The Treasury Markets Association will launch a daily price fixing for renminbi denominated bonds issued in Hong Kong from July 12.

The move will enhance the price transparency of the renminbi bonds and facilitate the development of the renminbi bond market in Hong Kong.

The fixing will be launched on the same day as the first renminbi bond is issued in Hong Kong and will be extended to other new renminbi bond issues in the future.

The renminbi bond price fixing is calculated by taking the arithmetic mean of the mid-price quoted by designated contributing banks, excluding the two highest and the two lowest prices. A total of 14 banks have been designated by the association to contribute quotes.

There will be one official fixing per day, published at 11.30am on every trading day from Monday to Friday. The closing reference price will also be published at 4.30pm on the same day.